APCO Company manufactures various lines of bicycles. Because of the high volume of each line,...
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| APCO Company manufactures various lines of bicycles. Because of the high volume of each line, the company employs a process cost system using the weighted-average method to determine unit costs. Bicycle parts are manufactured in the molding department and then are consolidated into a single bike unit in the molding department and transferred to the assembly department where they are partially assembled. After assembly, the bicycle is sent to the packing department. | |||||||||||||
| please fill in the question marks and explain formulas | |||||||||||||
| Cost per unit data for the 20-inch dirt bike have been completed through the molding department. Annual cost and production figures for the assembly department are presented in the schedules that follow. | |||||||||||||
| Assembly Department Cost Data | |||||||||||||
| Transferred in | Assembly | Total Cost of | |||||||||||
| From Molding | Assembly | Conversion | Dirt Bike through | ||||||||||
| Department | Materials | Cost | Assembly | ||||||||||
| Prior period costs | $90,450 | $7,363 | $12,621 | $110,434 | |||||||||
| Current period costs | $1,318,320 | $100,530 | $279,014 | $1,697,864 | |||||||||
| Total costs | $1,408,770 | $107,893 | $291,635 | $1,808,298 | |||||||||
| Assembly Department Production Data | |||||||||||||
| Percentage Complete | |||||||||||||
| Assembly | |||||||||||||
| Bicycles | Transferred-in | Materials | Conversion | ||||||||||
| Beginning inventory | 3,400 | 100% | 100% | 87% | |||||||||
| Transferred in from molding during year | 49,800 | 100% | |||||||||||
| Transferred out to packing during year | 43,000 | 100% | 100% | 100% | |||||||||
| Ending inventory | 4,600 | 100% | 54% | 87% | |||||||||
| Defective bicycles are identified at the inspection point when the assembly labor process is 94 percent complete; all assembly materials have been added at this point. The normal rejection for defective bicycles is 6 percent of the bicycles reaching the inspection point. Any defective bicycles above the 6 percent quota are considered to be abnormal. All defective bikes are removed from the production process and destroyed. | |||||||||||||
| Required: | |||||||||||||
| 1. Compute the number of defective, or spoiled, bikes that are considered to be: | |||||||||||||
| a. Normal | |||||||||||||
| b. Abnormal | |||||||||||||
| a. Normal amount of defective or spoiled bikes | |||||||||||||
| ? | |||||||||||||
| Bikes passing through assembly department | |||||||||||||
| Less: | |||||||||||||
| Bikes not inspected during current year | |||||||||||||
| Inspection point | 94% | % Completed | Units | Not Inspected This Year | |||||||||
| Beginning work-in-process inventory | |||||||||||||
| (The opening balance of work-in-process inspected this year) | 87% | 3,400 | ? | ||||||||||
| Ending work-in-process inventory | |||||||||||||
| (Reached inspection point, therefore inspected this year or next) | 87% | 4,600 | ? | ||||||||||
| Bikes that reached inspection point | |||||||||||||
| Normal defective/spoiled rate | |||||||||||||
| Normal amount of defective/spoiled bikes | |||||||||||||
| b. Abnormal amount of defective/spoiled bikes | |||||||||||||
| Total bikes lost | |||||||||||||
| Normal amount of defective/spoiled bikes | 0 | ||||||||||||
| Abnormal amount of defective/spoiled bikes | |||||||||||||
| 2. Compute the equivalent units of production for the year for: | |||||||||||||
| a. Bicycles transferred in from the molding department | |||||||||||||
| b. Bicycles produced, with regard to assembly material. | |||||||||||||
| c. Bicycles produced, with regard to assembly conversion. | |||||||||||||
| Process Cost Report | |||||||||||||
| Inspection Point | ? | ||||||||||||
| Whole | --Percent Complete-- | ||||||||||||
| Units | Transferred-in Costs | Materials | Conversion | ||||||||||
| Beginning WIP | 3,400 | ||||||||||||
| Units started or Trans-in | 49,800 | ||||||||||||
| Total to account for | 53,200 | ||||||||||||
| Units Finished or Trans-out | 43,000 | 100% | 100% | 100% | |||||||||
| Normal spoilage | 0 | ? | ? | ? | |||||||||
| Abnormal spoilage | 0 | ? | ? | ? | |||||||||
| Ending WIP | 4,600 | 100% | 54% | 87% | |||||||||
| Total accounted for | |||||||||||||
| EQUIVALENT UNITS: Wtd Avg Method (no. of completed units + equiv units lost + equiv units in ending WIP inv) | |||||||||||||
| Transferred In | ? | ||||||||||||
| Materials ? | |||||||||||||
| Conversion ? | |||||||||||||
| 3. Compute the cost per equivalent unit for the fully assembled dirt bike. | |||||||||||||
| Calculating Equivalent Unit Costs: | Added by Assembly Department | ||||||||||||
| Trans-in | Materials | Conversion | Total | ||||||||||
| Beginning WIP | $90,450 | $7,363 | $12,621 | $110,434 | |||||||||
| Current Costs | $1,318,320 | $100,530 | $279,014 | $1,697,864 | |||||||||
| TOTAL | $1,408,770 | $107,893 | $291,635 | $1,808,298 | |||||||||
| WTAVG | Cost per EU | ? | ? | ? | ? | ||||||||
| 4. Compute the amount of the total production cost of $1,808,298 that will be associated with the following items: | |||||||||||||
| a. Normal spoiled units. | |||||||||||||
| b. Abnormal spoiled units. | |||||||||||||
| c. Good units completed in the assembly department. | |||||||||||||
| d. Ending WIP inventory in the assembly department. | |||||||||||||
| COST SUMMARY - WEIGHTED AVERAGE | |||||||||||||
| Finished Goods | 43,000 | units | |||||||||||
| Good production | ? | ||||||||||||
| Normal spoilage | ? | ||||||||||||
| TOTAL ? | |||||||||||||
| Abnormal Spoilage | ? | units | ? | ||||||||||
| Ending WIP | 4,600 | units | |||||||||||
| Transferred-in | ? | ||||||||||||
| Materials | ? | ||||||||||||
| Conversion | ? | ? | |||||||||||
| Total Costs Accounted For ? | |||||||||||||
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